As we enter the home stretch of a long presidential
campaign, the good news is that both major candidates recognize that our health
care system, especially the insurance marketplace, does not work well. The
concept of selling health insurance across state lines has been included in
health care proposals put forth by several Members of Congress and most recently
in the campaign plan of Republican presidential nominee, Senator John McCain.
Allowing insurers to sell insurance across state lines
would not work as advertised. While it may help the young and healthy, it will
have a devastating impact on the insurance market for everyone else (and none of
us will be young and healthy forever).
- premiums would rise for many people,
- benefits would be less-generous,
- more Americans would likely become
uninsured over time.
This policy approach fails to provide the incentives
necessary to transition insurers to a 21st Century business model that values
care coordination and high value care over underwriting and marketing. Without
substantial additional reforms, the proposal to sell insurance across state
lines will not work for most Americans.
For the complete policy paper, please click here. For a brief summary of the findings of the paper, please click here.